After the market on February 26, Shengmei Semiconductor Equipment (Shanghai) Co., Ltd. disclosed its 2024 annual report, which is also the first annual report of the Science and Technology Innovation Board. Judging from the published data, Shengmei Shanghai (688082. SH) in 2024 delivered a brilliant "report card" of steady improvement in business performance.

According to the data, in 2024, the company will achieve operating income of 5.618 billion yuan, a year-on-year increase of 44.48%; the net profit attributable to the parent company was 1.153 billion yuan, a year-on-year increase of 26.65%; The net profit after deducting non-net profit reached 1.109 billion yuan, a year-on-year increase of 27.79%, and the net profit attributable to the parent company after excluding share-based payment expenses was 1.444 billion yuan, a year-on-year increase of 35.48%; Basic earnings per share was 2.64 yuan, an increase of 26.32% over the same period last year.

The operating performance reached a new high, and the growth value was recognized by the market

On the whole, Shengmei Shanghai will maintain a good momentum of stability and upward trend in 2024. In 2024, based on factors such as the execution progress of orders in hand, product delivery plans and customer acceptance arrangements, SEM Shanghai has raised the lower limit of its annual revenue forecast several times. The annual report revenue "fell under the hammer" of 5.618 billion yuan, a record high since listing, the fourth quarter of the single-quarter performance to achieve high growth, operating income of 1.641 billion yuan, an increase of 44.14% over the same period last year, a single quarter net profit attributable to the parent of 395 million yuan, an increase of 66.04% year-on-year. At the same time, in 2024, due to the increase in sales receipts compared with the previous period and the increase in advance receipts caused by the increase in sales orders, the net cash flow generated by the company's operating activities will turn from negative to positive, reaching 1.216 billion yuan, and the quality and efficiency of operation and management will continue to improve.

As for the reasons for the growth of business performance in 2024, Shengmei Shanghai said that with the continuous improvement of the company's technical level, product maturity and market recognition of the company's products, the rapid development of business and the continuous growth of sales revenue, so that it will maintain continuous profitability in 2024.

It is worth mentioning that in the 2024 annual report, the company disclosed for the first time the net profit attributable to shareholders of listed companies after excluding share-based payment expenses. According to the data, in 2024, the company's share-based payment expenses will be 291 million yuan, and after excluding the impact of share-based payment expenses, the company's net profit attributable to the parent company will increase by 35.48% year-on-year to 1.444 billion yuan. The company explained the reasons for choosing this financial indicator in the financial report: first, the expense does not directly affect the company's cash flow; Second, the impact of excluding share-based payment expenses can more objectively reflect the company's actual operating results, which helps investors to more accurately evaluate the profitability and operating efficiency of the company's core business, so as to compare the performance of companies in the same industry horizontally and analyze the company's operating results in different periods vertically. At the same time, the equity payment expenses also reflect the company's determination to actively implement the equity incentive plan, attract and retain core talents, help the team enhance cohesion and innovation motivation, and focus on the long-term development of the company.

While optimizing operations and enhancing the company's value, SEM Shanghai maintains stable dividends and pays attention to shareholder returns. According to the profit distribution plan for 2024, the company plans to distribute a cash dividend of 6.57 yuan (tax included) for every 10 shares, with a total cash dividend of 288 million yuan (tax included). There will be no bonus shares for this profit distribution, and no capital reserve will be converted into share capital. In addition, in January 2024, the company disclosed the dividend return plan for shareholders in the next three years (2024-2026), and the long-term sustainable dividend plan also proves to the outside world that the company attaches great importance to giving back to shareholders.

Authoritative third-party institutions are also optimistic about the future development of Shengmei Shanghai. Previously, Huajin Securities said that the company, as a leading enterprise of cleaning equipment and electroplating equipment, adheres to the development strategy of technological differentiation, product platformization and customer globalization, and is transforming into a platform-based semiconductor equipment group. Great Wall Securities believes that the platform construction will bring long-term growth momentum to the company.

Continuously consolidate the three major strategies and continue to promote quality and efficiency

In 2024, in the context of the continuous recovery of the global semiconductor industry, the company will focus on its main business, continue to adhere to the strategy of "technology differentiation, product platformization, and customer globalization", continuously consolidate and enhance the advantages of independent innovation, and promote the operating performance of all product segments to achieve substantial growth.

According to the data, the company's semiconductor cleaning equipment revenue in 2024 will be 4.057 billion yuan, a year-on-year increase of about 55.18%; the revenue of other semiconductor equipment (electroplating, vertical furnace tubes, stress-free copper polishing equipment, etc.) was 1.137 billion yuan, a year-on-year increase of about 20.97%; The revenue of advanced packaging wet equipment was 246 million yuan, a year-on-year increase of about 53.55%. The company's business lines have maintained a momentum of rapid growth, and complemented each other to continue to build a moat of product diversification.

In terms of differentiated innovation, the company attaches great importance to technology research and development, and continues to maintain high-intensity R&D investment to achieve continuous iterative research and development of semiconductor equipment and adapt to new market demand. The company's R&D investment in 2024 will be 838 million yuan, an increase of 27.36% year-on-year. In addition, the company also attaches great importance to the transformation of technological achievements, and in 2024, the company and its holding subsidiaries applied for a total of 311 patents, an increase of 89.63% over the previous year, and by the end of 2024, a total of 1,526 patents have been applied, an increase of 37.11% over the end of the previous year. The rapid growth of patent applications is the best proof that the company has always taken independent research and development as the driving force for its own development.

In addition to transforming technological achievements into patents, the company attaches more importance to the "landing" of its own technological achievements and the formation of new processes, new technologies and even new equipment, so as to provide customers with better and more advanced semiconductor special equipment and process solutions. The company's Ultra C Tahoe cleaning equipment product has also achieved an important performance breakthrough, making it possible to achieve the effect of a stand-alone wafer cleaning equipment in the medium and low temperature sulfuric acid (SPM) cleaning process, and can reduce chemical consumption by up to 75%, making it more environmentally friendly. In addition, the plasma-enhanced atomic layer deposition furnace tube launched by the company has entered two integrated circuit wafer manufacturing plants in China, and is being updated, optimized and prepared for mass production.

With excellent product advantages, the company has won the favor of many customers at home and abroad. It is reported that at present, the company's overseas customers have spread all over the South Korean, American and European markets, and the company will continue to increase market development efforts, while deepening cooperation with existing customers, actively explore the global market, realize the expansion of customer base, and ultimately promote the steady increase in operating income.

At the same time, the company disclosed the 2025 action plan of "improving quality, efficiency and return" at the same time as the annual report, stating that in 2025, the company will continue to grasp the development opportunities of the semiconductor industry, closely focus on the needs of downstream customers, and adopt the method of strengthening the development of new customers and deepening the cooperation of old customers.

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